The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/JPY, and GBP/USD.
EUR/USD: is still flipping around in the 1.0500-1.1000 range. Intraday moves are extreme and liquidity is getting worse. The moves seem to be driven by flows, which have been mixed as ECB President Draghi provided little new insight to the market yesterday. Stay flexible and keep it tight.
USD/JPY: The pair tested the post-payrolls lows from March overnight and held around 118.70. We expect locals to buy at the lows. We prefer buying on dips around 119 with stops just below 118.70.
GBP/USD: Cable sold off a little on Monday after YouGov pointed to Labour leading the polls but found support just above 1.4550 and has been stronger since. This could run out of steam very soon as the pair is heading into strong resistance around 1.4950, where it held many times in the last month. Sell rallies between 1.4950 and that level.
